The ultra-low-cost US carrier Spirit Airlines announced Saturday that it has “started an orderly wind-down of our operations.”
The move took effect immediately: all flights were canceled and customer service was suspended. The airline said customers can obtain refunds through its automatic refund process.
“We are proud of the impact of our ultra-low-cost model on the industry over the last 34 years and had hoped to serve our guests for many years to come,” the company said.
The shutdown could affect about 17,000 jobs.
Spirit said its financial outlook was hurt by rising oil prices and “other pressures” on its business. The war in Iran pushed fuel costs to more than $4.50 per gallon by the end of April — over twice what the company had forecast for 2026.
No government bailout deal was reached. President Donald Trump had recently suggested a possible rescue, and US media reported a proposal that would have involved $500 billion of taxpayer money in exchange for a stake in the airline. Trump said, “If we can help them, we will, but we have to come first,” adding the administration would act only “if it’s a good deal.” On Friday he said his administration had made a “final proposal” to keep Spirit flying, but no agreement was reached.
Spirit, once among the largest US low-cost carriers, has struggled since the COVID-19 pandemic. It filed for bankruptcy protection in 2024 and again in 2025 and has reduced capacity amid falling passenger numbers. In February the airline reached a debt-restructuring deal with creditors, but that agreement did not anticipate the large fuel-price surge tied to the Iran war.
Edited by: Louis Oelofse